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General

On Slack: GST blueprint, B/F/REXIT impact, Inflation doves, Booze express, The Inevitable Exit, Commodity Options and much more….

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The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note by replying to this email.

A brief summary of some of the interesting things discussed there in the last few days:

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#general: GST blueprint fuels speculation over additional tax on share transactions

The model goods and services tax (GST) draft has raised questions on whether capital market transactions would be subject to an additional tax. (Link)

#general: Raghuram Rajan’s impending US return is the biggest irony of our times

(Link)

#general-from the past: The biggest ever fire sale of Indian corporate assets has begun, to tide over bad loans crisis

(Link)

#general: No Rexit impact? Foreign funds took out Rs 2,837 cr on June 20

Domestic institutions including state-run behemoth LIC saved the day for Indian markets on June 20, as overseas investors pressed sell-button amid ‘Rexit’ jitters to take out over Rs 2,837 crore from Indian markets — the highest single-day outflow so far this fiscal. (Link)

#general: Most names doing rounds to replace Rajan are inflation doves’

In what is likely to appease the pro-growth lobby, Japanese brokerage Nomura has opined that most names being considered to fill the post of RBI Governor have a neutral-to-dovish stance on fighting inflation, unlike the incumbent Raghuram Rajan whose hawkishness is well known. (Link)

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#general: Asaram Bapu’s undisclosed income Rs 2,300 cr: Income Tax department probe

An appraisal report prepared by the investigation wing of the I-T department has also found that Asaram, through his followers, allegedly ran a lending scheme that offered cash loans. (Link)

#general: Raghuram Rajan opposes using RBI funds to recapitalise PSU banks

Outgoing Governor Raghuram Rajan today rejected suggestions for RBI to infuse its surplus funds to capitalise ailing public sector banks — proposed by CEA Arvind Subramanian — saying it is a “non-transparent” idea that can create “conflicts of interest”.(Link)

#general: Hedge-fund partner Sanjay Valvani apparently committed suicide: Report

Hedge-fund partner Sanjay Valvani, who was charged with insider trading last week, was found dead in what police are investigating as an apparent suicide, says a report from the Vanity Fair.

The news report quoting a spokesperson from the New York Police Department (NYPD) says police were called to his Brooklyn home on Monday night where they found a note and a knife near his body. He reportedly suffered a self-inflicted slash to his neck. (Link)

#general-from the past: All aboard the booze express

Bihar’s prohibition has led to “liquor tourists” who visit the wetter pastures in nearby states. (Link)

#general: Rajan – the exit was inevitable

(Link)

#stocks-fundamentals: JLR Recalling 11,000 Vehicles in China over Faulty Sensors

Tata Motors-owned Jaguar Land Rover on Thursday began recalling more than 11,000 vehicles in China due to faulty crankshaft sensors, China’s quality watchdog said.

The recall affects 6,067 imported Land Rover Discovery 4 SUVs manufactured between April 2012 and October 2012. (Link)

#general: The ‘Anti-Business’ President Who’s Been Good for Business

Obama on free trade, regulating banks, and why his daughters won’t work for Wall Street.(Link)

#general: Sebi may allow trade in commodity options soon

Hedgers and punters in commodity futures could soon get to trade options in gold, silver, soyabean and guar seed once Sebi approves the launch of the new products in around three-four months, three persons aware of the development told ET. Also, portfolio management services (PMS) could be approved by the regulator in due course, they added. (Link)

#general-from the past: ‘Black Monday’ wipes off equity MFs’ gains this year

Average YTD return dwarfed to a mere 60 basis points on Monday against 7.4% till a day before. (Link)

#macronomics: Britain has voted to leave the EU – what happens next?

After rejecting the union, Brexiters must choose between an exit from the single market and a half-in, half-out purgatory. (Link)

Black Swan Event

#macronomics: A nation divided – what next for Scotland?

Many huge questions are raised by the EU referendum result.

In Scotland the biggest and most pressing question is whether this vote could spell the breakup of the UK and hasten the day we see an independent Scotland. (Link)

#general: Spain to seek co-sovereignty on Gibraltar after Brexit

Spain will seek co-sovereignty on Gibraltar following Britain’s vote to leave the European Union, acting foreign minister Jose Manuel Garcia-Margallo said on Friday, saying the vote completely changed the outlook on the future of the peninsula. (Link)

#backtobasics:

Basic Financial MistakeL
ink

Two Deadly Wealth Management AssumptionsLink

Unquantifiable RiskLink

This is the simplest explanation of the whole Brexit affairLink

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Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.